Thursday May 14, 12:39 PM
Dollar mixed on recovery uncertainty
LONDON (AFP) - The dollar fell against the euro and rose versus the yen on Thursday as prospects of a quick economic recovery dampened, dealers said.
The European single currency climbed to 1.3609 dollars from 1.3598 dollars late on Wednesday in New York.
Against the Japanese currency, the dollar gained to 95.55 yen from 95.20 yen late Wednesday.
The dollar gained against the Japanese currency as worse-than-expected US retail data dampened economic recovery hopes and raised demand for the safe-haven currency, dealers said.
The greenback was bought against most major currencies after an unexpected fall in US retail sales dented hopes that the worst of the economic slump is over.
The data published on Wednesday suggested ongoing caution among consumers in the face of recession despite massive government recovery efforts.
Consumer spending is key to a recovery since it accounts for two-thirds of output in the world's largest economy.
"Investors are watching the share prices as the US retail sales report may push down the stock market and create a risk factor," said Saburo Matsumoto, chief foreign exchange strategist at Sumitomo Trust and Banking.
US, European and Japanese stock markets tumbled sharply after data showed that retail sales dropped 0.4 percent in April.
"The US dollar climbed as risk appetite fell victim to the pullback in equity markets," said analysts at Standard Chartered (LSE: STAN.L - news) . "Consistent dollar selling of the previous few weeks is beginning to dry up."
While the dollar was generally firmer against other major currencies in the wake of the new figures, it fell in US trade against the yen, which is also seen as a relatively safe bet in times of turmoil.
"The decline in sentiment towards global economic activity and worsening in investor risk-appetite increased demand for the 'safe-haven' dollar and yen," said NAB Capital analyst John Kyriakopoulos.
In trading here, the euro was changing hands at 1.3609 dollars against 1.3598 dollars late on Wednesday, at 130.00 yen (129.46), 0.8989 pounds (0.8972) and 1.5066 Swiss francs (1.5050).
The dollar stood at 95.55 yen (95.20) and 1.1075 Swiss francs (1.1063).
The pound was at 1.5134 dollars (1.5152).
On the London Bullion Market, the price of gold edged up to 924.59 dollars an ounce from 924 dollars an ounce late on Wednesday.
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